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Borrowing power calculator

Use our calculator to estimate your potential borrowing capacity with an NRMA Home Loan in under 10 minutes.

Get an estimate of how much you can borrow

Getting an idea of how much you could borrow for your home loan is an important step in buying a property and choosing a lender. By considering your current expenses and repayments, our calculator can help you work out how much you could borrow so you can feel more confident planning your finances to suit your needs. Simply enter your income and expenses to get started and see your estimated borrowing power.

Application

Applying for an NRMA Home Loan

Here's what our online home loan application process looks like.

1. Get ready

Gather all your required information together, including your ID, and documents for proof of income and expenses.

2. Apply online

As you go through your application, you may have your property valued, your personal details verified, a credit check completed and validation of your income and expenses in real time. Our experts are on hand to review anything that can't be confirmed digitally.

3. Sign and save

If approved, your loan documents will be auto-generated and emailed to you, generally within minutes. Simply sign and return to complete the process.

Refinance calculator

Looking to refinance a home loan?

Find out how much you could save by switching to an NRMA Home Loan.

Calculate

Repayments calculator

Want to calculate your potential mortgage repayments?

Find out your repayment options, rates and schedule on your loan amount.

Calculate

Compare NRMA Home Loans

Find a home loan that best suits you. With great rates, low fees and flexible loan options, there's good reason to choose the home of good borrowers.

Basic Home Loan

Choose the Basic Home Loan for no ongoing fees and features to help you tailor your loan.

From

5.19
% p.a.
Interest rate 1
5.23
% p.a.
Comparison rate 2

Features

  • No ongoing fees

  • No fee to redraw online

  • Extra repayments

    • Unlimited for variable
    • Max $20,000 p.a. without penalty for fixed loans

  • Variable and fixed rates available

  • 20% deposit minimum

For a Basic Home Loan on an owner-occupied property with principal & interest repayments, and a loan-to-value ratio (LVR)3 of 50% or less.

Offset Home Loan

The Offset Home Loan, a home loan to suit changing needs, with 100% offset accounts4 available on variable and fixed loans.

From

5.19
% p.a.
Interest rate 1
5.40
% p.a.
Comparison rate 2

Features

  • Up to six 100% offset accounts4 per loan account (fixed and variable loans)

  • No fee to redraw online

  • Extra repayments

    • Unlimited for variable
    • Max $20,000 p.a. without penalty for fixed loans

  • Variable and fixed rates available

  • 10% deposit minimum

For an Offset Home Loan on an owner-occupied property with principal & interest repayments, and a loan-to-value ratio (LVR)3 of 50% or less.

Borrowing calculator FAQs

View all FAQs

How does the borrowing calculator work?

The home loan borrowing calculator considers the type of loan you’re applying for, your income, and your expenses to give you an idea of how much you can expect to be able to borrow.

There are lots of different factors that go into calculating how much you can borrow for a home loan, and Bendigo and Adelaide Bank designed the borrowing calculator to be a faster and simpler way to get an estimated answer.

Every lender has their own way of calculating borrowing power so you might get different results with other home loan calculators.

To find out your borrowing capacity before applying through the online assessment and application process, check the borrowing calculator.

What’s the minimum deposit I need for an NRMA Home Loan?

The minimum home loan deposit required for an NRMA Home Loan depends on the type of loan:

  • For a Basic Home Loan, you need a deposit of at least 20% of the property value, which corresponds to a maximum Loan-to-Value Ratio (LVR) of 80%.
  • For an Offset Home Loan, you need a deposit of at least 10% of the property value, which corresponds to a maximum Loan-to-Value Ratio (LVR) of 90%.

If you borrow more than 80% of a property’s value, you may be required to take out Lenders Mortgage Insurance.

If you already own a property, you can also use the equity in your home as an investment property deposit. If you have enough equity, you can borrow up to 80% of the property value without having to use your own cash.

How much can I borrow for a new loan?

With NRMA Home Loans, you may be able to borrow between $50,000 and $7,500,000.

The amount available to borrow depends on multiple factors. This includes your income, other financial commitments, and family situation (for example de facto, single, number of dependents), as well as details about the security property.

When calculating your borrowing power, lenders consider your ability to comfortably meet the loan repayment requirements, which can be impacted by the factors above. While you also won’t be able to borrow more with a higher deposit amount, it may increase your maximum purchase price.

Use the borrowing calculator to find out your borrowing capacity before starting the application process.

What documents will I need to provide when applying for a new home loan?

When you apply for a new NRMA Home Loan, you’ll need to provide ID and proof of your finances.

You’ll be asked to digitally verify one of these forms of ID:

  • Driver’s licence
  • Australian passport
  • Foreign passport with an Australian visa
  • Medicare card.

You’ll also be asked to verify your current financial situation.

You can do this by linking your bank account(s) to the digital verification technology we use. Or, by manually uploading copies of your transaction statements, loan statements and credit card statements (we’ll let you know what documents are needed during the application).

A credit check will be run once you complete your personal details and have read and consented to the Privacy Disclosure and Consent Form.

Once you submit your documents and your application, you’ll find out if your loan is approved, or if more information is needed.

What’s the difference between an owner-occupied and investment home loan?

An owner-occupied home loan is for people buying a property to live in. Whether you're a first-time buyer or upsizing, this type of home loan is designed to help you settle in with confidence and flexibility.

An investment home loan is for purchasing property you plan to rent out or hold for capital growth. If you’re considering starting or expanding a property portfolio, an investment loan may support your long-term financial goals.

What’s the difference between a principal and interest loan and an interest-only loan?

Principal and interest loans are the most common type of home loan. They involve making repayments which pay down some of the principal balance plus the interest accrued.

An interest-only loan involves making repayments for a set time (usually 1–5 years) to cover the interest being accrued and none of the principal. As a result, repayments on interest-only loans are lower than principal and interest repayments.

What is the difference between a fixed and variable rate?

A fixed rate home loan means the interest rate is locked in for a certain period (usually 1–5 years). At the end of this period, you can either commit to another fixed rate or revert to a variable interest rate.

A variable rate home loan gives you flexibility to change the rate whenever the market changes, as you’re not locked into a rate for a fixed period.

The repayments for a fixed rate loan are the same every time. But it also means you pay the same interest rate, even if market rates drop.

Fixed rate home loans also usually come with less features than variable rate loans, and you may not be able to pay the loan off early.

A fixed rate NRMA Home Loan can also come with an offset account. This lets you use your savings to lower the amount of interest you pay and reduce the overall cost of the loan.

Find a home loan that’s right for you.

What is Loan-to-Value Ratio (LVR)?

Loan-to-value ratio represents the amount you’re borrowing against the bank’s value of the property used as security. A higher LVR represents a higher risk loan to a lender as there is less equity in the property the lender is using as security for the loan. 

The LVR is calculated by dividing the loan amount by the bank’s valuation of the security property, multiplied by 100. 

Here’s an example:
A couple want to purchase a property with a bank valuation of $800,000. They have a deposit saved of $80,000. They need to borrow $720,000.

  • Divide 720,000 by 800,000 to get 0.9
  • Multiply 0.9 by 100 to get a percentage
  • The LVR is 90%

Because the couple have an LVR greater than 80%, they may need to pay Lenders Mortgage Insurance (LMI).

With NRMA Home Loans the LMI premium is added to the loan amount. This means your loan repayments will be higher than they would have been if you didn’t have LMI.

What’s Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance (LMI) is a fee which will be added to your loan if you're borrowing more than 80% Loan-to-Value Ratio (LVR) of a property’s value (which means if you have less than a 20% deposit). This means the loan amount you need to borrow and your loan repayments will be higher than if you had at least a 20% deposit and did not need to incur Lenders Mortgage Insurance.

It protects the lender (for NRMA Home Loans, this is Bendigo and Adelaide Bank) from financial loss if you can’t afford to meet your repayments and default on the loan.

You’ll also need to pay LMI if the building is high density (5 or more storeys), or if there are 50 or more other residential properties in the same complex.

Factors that affect how much LMI will cost include:

  • The size of the loan (the higher your loan, the higher the cost of LMI)
  • Your deposit amount (the lower the deposit, the higher the cost of LMI)
  • The purpose of the loan (investors can pay as much as 20% more for LMI than home buyers)
  • The insurer used by your lender (premiums differ between insurers).

LMI can cost thousands of dollars, so if you want to avoid paying it, the best way is by saving at least a 20% deposit before applying for a home loan.

Need help?

Get support and answers to your home loan questions.

Contact us

Ready to get started?

Apply now or continue your NRMA Home Loan application.

Things you should know

About the borrowing calculator: The home loan borrowing calculator is a guide only based on the details entered. Results are not a quote, credit approval or offer of credit. They are not advice on borrowing capacity, product selection features or options, or about making extra payments. The interest rate used to determine borrowing potential is based on the Loan-to-Value Ratio (LVR) band of <50% for the selected product. The actual LVR band and associated rate for the actual LVR band that applies to your application may be different. A higher LVR band and associated rate could reduce your maximum borrowing potential, which has not been factored into the calculation. The results assume regular scheduled payments and that the interest rate does not change. Actual interest rates, fees and savings may vary depending on verified valuation, eligibility, and lending criteria. Interest rates are subject to change except during a fixed rate period. Rates and repayment amounts do not include any monthly service fees or applicable lenders mortgage insurance.

Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL and Australian Credit Licence 237879) (“Bendigo Bank”) is the credit provider. Credit services are provided by Tiimely Pty Ltd (ABN 41 605 696 544 and Australian Credit Licence 496431) (“Tiimely”). Insurance Australia Limited trading as NRMA Insurance (ABN 11 000 016 722) (“IAL”) is a member of AFCA and does not hold an Australian Credit Licence. IAL may receive a commission from Bendigo and pay a commission to Tiimely if your loan application is approved.

NRMA Home Loans is brought to you by Insurance Australia Limited ABN 11 000 016 722, trading as NRMA Insurance, which is a separate and independent company from National Roads and Motorists' Association Limited ABN 77 000 010 506, trading as NRMA. NRMA provides Membership, the “My NRMA” app and other services.
 

  1. All lending interest rates are subject to change. Rates are for new lending and may differ for existing customers. Other fees and charges may be applicable and can be found on the Rates & Fees page.

  2. Important information about comparison rates: The comparison rates displayed are calculated for a loan of $150,000 over 25 years. If a comparison rate relates to a loan with a fixed interest rate, the comparison rate has been calculated on the basis that our current applicable variable rate will apply at the end of the fixed rate period. If a comparison rate relates to an interest only loan with a fixed rate, the comparison rate has been calculated on the basis that the interest only period is the same duration as the fixed rate period. If a comparison rate relates to an interest only loan with a variable interest rate, the comparison rate has been calculated on the basis that the interest only period is 5 years. WARNING: The comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. Other fees and charges may be applicable and can be found on the Rates & Fees page. All interest rates are current and are subject to change without notice.

  3. The LVR is inclusive of capitalised Lenders Mortgage Insurance (LMI). LVR is subject to LMI acceptability, location, and loan purpose.

  4. Terms and conditions, fees and charges apply. All information is subject to change without notice. Full details available on application. Lending criteria apply. The Offset Account is available on the Offset Home Loan only for both fixed and variable products and must be linked to an eligible Home Loan account. The Offset Account product can only be linked to one eligible Home Loan account at any one time. Linked offset facility must be in the name of the customer name/number. Insurance Australia Limited is a member of AFCA. If you have a complaint about the home loan or offset account please refer to www.nrma.com.au/home-loans/complaints. Other fees and charges may apply and can be found at the Rates & Fees page. This is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether the Offset Account product is right for you, please consider your personal circumstances and read the Offset Account Terms and Conditions to determine if this product is right for you. The Offset Account Terms and Conditions and Offset Account TMD are available from this website.